Feng Shui of Defined Contribution Menu Construction
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In This Issue
Fiduciary and Plan Governance Material Feng Shui of Defined Contribution Menu Construction Summary: This paper addresses some of the issues that impact menu construction and investment product selection for defined contribution plans for the purpose of inspiring other sponsors to evaluate the harmony between their plan design and their menu construction. Source: Multnomahgroup.com Plan Fiduciaries' Duty to Monitor Investment Options Summary: The DOL and most authorities have long advocated having a systematic process to periodically review a plan's investment alternatives and make changes when necessary. The Supreme Court has confirmed that to do any less leaves plan fiduciaries vulnerable to liability for poor performing funds or funds with excessive expenses. Source: Bcgbenefits.com
403(b) Plans Summary: The QLAC seems to be in the 403(b) "sweet spot," considering that 403(b) annuities were originally designed to provide lifetime income in the first place. As with all things 403(b), however, there are a few unusual twists when trying to put a QLAC in a 403(b) arrangement. Source: Napa-net.org
Insight: Studies, Research and White Papers Are Managed Accounts a Better QDIA? Summary: The basic premise of a managed account is the construction of a completion portfolio with participants' defined contribution assets, built around their whole asset profile and individual circumstances. Paper posit that managed accounts, customized at the participant level, have the ability to improve retirement outcomes if designed and implemented appropriately. Source: Towerswatson.com Improving Outcomes With Electronic Delivery of Retirement Plan Documents Summary: Following the introduction in the House of Representatives of legislation to modernize the rules that apply to retirement plan communications, The SPARK Institute released a this 54 page white paper examining the rationales for allowing plan sponsors to make electronic delivery the default method for communicating with retirement plan participants. Source: Sparkinstitute.org
Items of Special Interest to Service Providers Helping Employers Choose Qualified Default Investments Summary: Fiduciary responsibility requires the careful selection of default retirement investments. Benefit advisers can add value with knowledgeable advice on qualified default investment alternatives, including through the use of selection tools. Source: Benefitnews.com The Impact of the DOL's Fiduciary Proposal on Sales of Insurance Products Summary: This paper explains the basis for the conclusions about the impact of the Department of Labor proposal to amend the fiduciary invest. advice regulation and the prohibited transaction exemptions for sales of insurance products to plans, participants and IRAs. Source: Drinkerbiddle.com The Dominance of DC and What It Means for Advisors Summary: With the pending DOL fiduciary regs, less money will be rolled out of plans. And there is a movement by the industry, supported by plan sponsors, to help workers consolidate their DC and IRA accounts. So what does it all mean for today's plan advisors? Source: Napa-net.org How the Re-Proposed Fiduciary Rule Came to Be Summary: The DOL published a proposed regulation to the definition of fiduciary within the meaning of ERISA. It has become the most controversial ERISA regulation in recent memory. This article is the authors attempt to put it all into context by providing a timeline of how it got to where it is today. Source: Retirementplanblog.com DOL Posts Public Comments on Proposed Fiduciary Rule Summary: The DOL has created a page on its website that lists and links to the comments it has received on its proposed fiduciary rule. The comment period is scheduled to run through July 20, so additional comments will be posted. Source: Dol.gov SIFMA Releases Its Version of Fiduciary Rule Summary: The Securities Industry Financial Markets Association, perhaps the most vocal opponent of the DOL's proposed conflict of interest rule, has released its own proposal for a universal fiduciary standard. Source: Benefitspro.com
Legislative and Washington DC Bill Introduced to Modernize Retirement Information Communications Summary: Representatives Jared Polis (D-CO), Phil Roe, M.D. (R-TN), Ron Kind (D-WI), and Mike Kelly (R-PA) introduced bipartisan legislation that would modernize the way employers communicate important retirement information by automatically opting participants into electronic delivery of documents. Source: House.gov
Court and Legal U.S. Recommends Denial of RJR 401k Stock Case Review Summary: U.S. Solicitor General Donald B. Verrilli Jr. said the questions before the Supreme Court in RJR Pension Investment Committee v. Richard G. Tatum do not warrant the court's review. Source: Planadviser.com
Compliance and Regulatory Related Seven Common Retirement Plan Mistakes Summary: The headlines are all about revenue-sharing, conflicts of interest and statutes of limitation, but the things that are likely to get plans and plan sponsors in trouble are a lot more mundane. Here are seven that are more likely to gum up the works for your average plan sponsor. Source: Napa-net.org Summary: In order to avoid delays in the preparation and filing of the form, article lists some things a plan sponsor can do to assist their service provider. Source: Legacyrsllc.com Don't Roll the Dice on Department of Labor Audits Summary: A resource guide meant to walk employers through the process of an audit from the DOL. The white paper includes information about how to prepare for an audit, the best way to acclimate staff to the audit process, what the DOL wants, and the most important elements of complying with requests. Source: Hubspot.net IRS Establishes Penalty Relief Program for One-Participant Plans Summary: In Revenue Procedure 2015-32 the IRS established a permanent program providing relief to plan administrators and plan sponsors of certain retirement plans from penalties for failing to timely comply with the annual reporting requirements. Source: Practicallaw.com DOL Warns of Widespread Deficiencies in Benefit Plan Audits Summary: More than 7,300 licensed CPAs nationwide audit more than 81,000 ERISA-covered employee benefit plans. The DOL's review found serious issues with the quality of these benefit plan audits. The report proposes that Congress amend ERISA's definition of "qualified public accountant" to include additional requirements and qualifications necessary to ensure the quality of plan audits, and allow the Secretary of Labor to issue regulations concerning the qualification requirements. Source: Shrm.org
Marketplace News NTSA Elite Advisor Award Finalists Named AllianceBernstein Launches Multi-Manager Target-Date CITs Transamerica and Merrill Lynch Team on 403(b) Program Pensionmark and Hawaii Western Partner TRA Names New Plan Administration Manager Fiduciary Plan Advisors Partners With InHub on RFP Tech
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